Fed Unleashes Another Big Rate Hike But Hints At A Pullback
The Fed's move raised its key short-term rate to its highest level in 15 years.
LEARN MORECurrent Federal Reserve Interest Rate At Highest Level Since 2008
Interest rates are once again rising, as the Fed announced another hike — the sixth this year.
Current Federal Reserve Interest Rate At Highest Level Since 2008
Matt Rourke / AP
November 3, 2022
Interest rates are still on the rise. Federal Reserve Chairman Jerome Powell announced yet another 75-basis-point-hike on Wednesday – for the fourth time in a row.
"Financial conditions have tightened significantly in response to our policy actions, and we are seeing the effects on demand in the most interest-rate-sensitive sectors of the economy, such as housing. It will take time, however, for the full effects of monetary restraint to be realized — especially on inflation," said Powell.
The Fed made it clear that while some progress has been made, more rate hikes are in the future for as long as inflation remains above target.
And this is the sixth hike so far this year, with one more expected in December — which would bring the total to seven increases over the course of 2022, all in the name of taming inflation.
This means it will continue to become more expensive for consumers to borrow money, for anything from a mortgage loan to an auto loan – which Powell said he knows has hurt some more than others.
"My colleagues and I are acutely aware that high inflation imposes significant hardship as it erodes purchasing power, especially for those least able to meet the higher costs of essentials like food, housing, and transportation," said Powell.
But Powell believes the temporary financial pain caused by higher rates will bring inflation, which still hovers above 8%, down to the 2% target. And the next big data report coming out is the jobs report on Friday, which will give us some more insight into the impact of all these rate hikes.
Report: Gen Z accumulating debt faster than other generations
Generation Z had, on average, more than $16,000 of debt at the end of of 2022. That's an increase of 3% from earlier in the year.
4:12
Child care costs rising with more private equity firm investments
Experts are cautioning that more private equity firms investing into child care could make the affordability crisis worse.
Foot Locker closing more than 400 stores in malls
Though it's shuttering stores in malls, the company has plans for hundreds of new concept stores.
Top Stories
3:46
How are U.S. jobs reports compiled?
The data is based off estimates and not full official counts of the entire labor force, which is now over 160 million strong in the U.S.
5:26
How you can clean the air to protect yourself from COVID
People can remove harmful aerosol particles, like the virus that causes COVID, from the air on their own terms.
3:24
Lawmakers react after Nashville school shooting
After a shooter killed 6 at a Nashville school, some lawmakers promoted current gun safety legislation, with others urging an assault weapons ban.
